Transport group to LTFRB: Uber should pay P6B to avoid 1-month suspension

A transport group leader on Wednesday claimed that Transport Network Company (TNC) Uber Systems Inc. should pay a fine of P6 billion—and not P10 million as ordered by the government—in place of its one-month suspension.

Kilusan sa Pagbabago ng Industriya ng Transportasyon (KAPIT) chairman Vigor Mendoza II made the suggestion in a hearing before the board members of the Land Transportation Franchising and Regulatory Board (LTFRB).

Mendoza noted that under the rules, drivers without a 45-day provisional authority (PA), which allows them to accept fares until they are issued a franchise, will have to pay a fine of up to P120,000 each if caught.

The lawyer said since Uber has sround 50,000 "colorum" vehicles, or those operating illegally, the company should then pay the government P6 billion.

"A P10-million fine would only mean that Uber is operating 84 colorum vehicles," Mendoza said.

'Too much'

However, LTFRB board member Aileen Lizada said that it would be "too much" for the board to impose a P6-billion fine.

"I believe that is too much. I believe billions would be too much. We do listen, reasonable naman tayo," Lizada told reporters.

She added that Uber's appeal to convert the one-month suspension into a fine will be resolved as soon as possible.

"On the part ng board, considering 'yung urgency ng matter, we will do out best to resolve this the soonest as possible time, para we put to rest already itong issue na ito and we will be able to meet our deadline for September namin na technical working group, what we promised Congress and Senate," she said.

"We will be crafting and revising MCs (Memorandum Circulars) and we will be coming for the number of both TNCs if we see na we will be able to renew the respective accreditation," she added.

Uber, on August 17, asked the LTFRB if it could just pay a P10-million fine instead of serving its one-month suspension.

The LTFRB suspended the accreditation of Uber after it continued to accept new drivers into their platform. — MDM/BM, GMA News